Assume that investor I holds a portfolio P consisting of stock A and stock B. Stock A

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Assume that investorIholds a portfolio P consisting of stock A and stock B. Stock A has an expected return of 22% and a standard deviation of 39%. Stock B has an expected return of 15% and a standard deviation of 24%. Stock A and Stock B are perfectly negatively correlated. There is no risk-free asset.Iminimizes the risk of her portfolio. What should be the weight for stock A?

Posted Date: Jun 06, 2024 05:06 PM

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Assume that investor I holds a portfolio P consisting of stock A and stock B. Stock A

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